JLEN adds anaerobic digestion plant with Warren Power acquisition

Listed environmental infrastructure fund JLEN announced the acquisition of Warren Power for an initial consideration, including working capital, of £14.8m on Thursday, subject to additional deferred payments up to £0.8m.

The London-listed firm said Warren Power owns 100% of the equity in Warren Energy, which holds the rights and operational assets that make up the anaerobic digestion (AD) plant.

It said the Warren AD plant is located in Methwold, Norfolk, and was commissioned in December 2015 before becoming operational in March 2016.

The plant has a thermal capacity of around 5MWth, and predominantly produces biomethane to be injected into the national gas grid.

In addition, the plant also has a 0.5MWe CHP engine, and is accredited under the Renewable Heat Incentive and Feed-in-Tariff schemes.

JLEN said the Warren AD plant was acquired from EIS funds managed by Amersham Investment Management, and minority shareholders Future Biogas.

Future Biogas would continue to provide management, operations and maintenance services to the AD plant after the acquisition.

JLEN said itself and Future Bioigas had an existing relationship in relation to other AD assets, including the Vulcan, Merlin, Biogas Meden, Egmere and Grange Farm plants, in the company's portfolio.

The acquisition increased the total capacity of renewable energy assets in the JLEN investment portfolio to 286.2MW, and further diversified its portfolio.

It said the acquisition was funded by a draw-down on JLEN's revolving credit facility.

“We are pleased with JLEN's continued investment in the anaerobic digestion sector, with this acquisition of its second AD plant in Norfolk, complementing JLEN's Egmere plant located nearby,” said chairman Richard Morse.

“We also value this opportunity to conclude a second transaction with Amersham and look forward to working with our partner, Future Biogas, to continue the strong performance of this asset.”